Hartalega

 

The revenues and adj EPS of Hartalega grew consistently for many years.  Due to the pandemic, its revenues and EPSs shot up, due to higher volumes delivered and better profit margins.  Now that the pandemic over, the world is faced with an oversupply of past inventories and falling demands for gloves.   It will be another year or two before these inventories are depleted and demands for gloves at the normal level resumed.   Gloves usage are still expected to grow over the years. 

Due to the huge profit margin during the pandemic enjoyed by the glove manufacturers and the ease of entry into this industry, many new players were attracted and established production of gloves.  Faced with new competitors, especially those from China, the preexisting glove manufacturers may not be as relaxed as in the past.   They can expect their profit margins to be very tight, having to keep production costs down.

Finally, in this commodity market of gloves, it will be the ones with the lowest costs that will be the leaders in this revamped glove industry.